Italian Referendum: Political uncertainty on the rise after PM referendum defeat

Italian Prime Minister Matteo Renzi announced in the early hours of Monday his decision to resign, after a government-backed referendum held on December 4 on Constitutional changes was rejected by the public by a wide margin. The plebiscite entailed proposals for curtailing the size and powers of the upper house of Parliament (the Senate of the Republic) and of regional authorities. Proponents of the reform argue that it would facilitate the legislative process and promote political stability as well as support investor confidence and economic recovery. The constitutional amendments had passed in Parliament in April, but a referendum was required as the bill fell short of receiving the required quorum of 2/3 of MPs in the second vote.